Exploring the prospects of the ecosystem services approach for natural resource management and poverty alleviation in India, this paper points out that it is vital to have an understanding of the political economy of negotiations over natural resource use. An appreciation of the synergies and trade-offs between ecosystem services is equally important to develop better strategies for pro-poor ecosystem management.

The environment master plan (EMP), being prepared by the government to secure a $ 2 million development policy loan from the World Bank, will address issues pertaining to 18 major sectors, virtually covering the whole gamut of development activities, to lay down the road map for sustainable growth of the ecologically fragile hill state.